MercoPress. South Atlantic News Agency

Poor news in China and US could mean additional stimuli could be in the pipeline

China’s economic expansion faces “notable downward pressure” said President Hu Jintao

The Brazilian stock exchange Bovespa index rose for a third session as Brazilian raw-material producers rallied after weaker economic data from China to the US fueled strong hopes policy makers will take further steps to boost growth.

Steelmaker Cia. Siderurgica Nacional SA had its biggest three-day gain since January 2009 and iron-ore producer Vale SA (VALE3) rose to the highest in two weeks as metals advanced. Airline Gol Linhas Aereas Inteligentes SA (GOLL4) jumped after Veja magazine said Qatar Airways Ltd. is in talks to buy the carrier.

The Bovespa rose 0.1% to 58,404.10 at the close of trading in Sao Paulo and the Real gained 0.3% to 2.0227 per US dollar.

China’s economic expansion faces “notable downward pressure,” President Hu Jintao said Sept. 8. Factory output rose at the slowest pace in three years in August, National Bureau of Statistics figures showed yesterday. Imports into the country unexpectedly fell, the customs bureau said on Monday.

The Federal Reserve meets this week to discuss potential asset purchases after the US added fewer-than-estimated jobs last month, Labor Department figures showed on September 7, when Brazilian markets were closed for a holiday.

Gol jumped 5.5% to 9.90 Real after Qatar Airways executives met top officials at Gol to discuss the acquisition, Veja reported, without saying where it got the information. Gol said in an e-mailed statement it isn’t in talks with Qatar Airways.

Commodities producers also gained after China disclosed plans on Sept. 6 to build 2,018 kilometers of roads, signaling the world’s second-largest economy is stepping up stimulus efforts to revive growth, said Marcelo Varejao, an analyst at Socopa brokerage. Chinese stocks jumped the most in eight months on Sept. 7.

The Bovespa has climbed 11% from this year’s low on June 5 as eased concern about Europe’s crisis and borrowing costs at a record low in Brazil boosted demand for equities.